Hearing sorts out roots of rising gas prices

While gas prices drift lower, Congress is holding hearings to determine what's behind it...and find the usual suspects:

At a congressional hearing in Long Beach, U.S. Rep. Diane E. Watson (D-Los Angeles) issued a staff report suggesting that if prices remained at current levels, California drivers could spend $5.5 billion more on gasoline during the peak April-to-September driving season than they did in 2003 — with about one-third of that borne by motorists in the Los Angeles area.

"Commuting is a necessity here in Southern California, and record gasoline prices are taking their toll on my constituents," Watson said at the hearing conducted by Rep. Darrell E. Issa (R-Vista), chairman of the energy and resources subcommittee of the House Committee on Government Reform.

Much of this year's rise in gasoline prices can be attributed to the soaring cost of crude oil, which accounts for about half of the final pump price, an industry representative and three government officials testified. With the price of crude oil lingering above $50 for much of this year, retail gasoline prices have set record highs nationwide and in California.

In addition, soaring world demand, fueled by booming economies in China and India, and a shortage of domestic refining capacity also have pumped up prices.